Page 48 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

1. Extend Domestic Leadership through Organic Growth

Although Central Retail is a leader in retail business of a variety of products through various formats and channels
in Thailand. However, Thailand is the market with fragmented competitors in all types of retail business, ranging
from department stores, supermarkets, hypermarkets, convenience stores to specialty stores. Therefore, Central
Retail’s primary goal in extending its leadership is to maximize its retail space utilization, expand the store network
rapidly, and integrate with its omnichannel platforms to increase market share and support higher customer
spending volume, especially in the areas outside Bangkok. The access to secondary markets is deemed as a good
opportunity for its business growth. During the past few years, Central Retail has noticed the growing volume of
customer spending in such areas than that in greater Bangkok. For this reason, Central Retail aims to increase its
market share significantly in those areas through organic growth.

Central Retail believes that its continuous intention in providing services to customers and adapting to the tastes
and preferences of customers plays a key role in helping Central Retail to gain more market share and customer
spending share. To accomplish the goal, Central Retail has offered the management at the local level more
opportunities to get involved, give opinions and make business decisions. Central Retail has begun to implement
the management plan according to its centrality principle in different local areas, allowing the local management
to jointly make decisions, and participate in local activities of the society. Central Retail is believed that this helps
it to respond to the changing tastes and preferences of local customers better.

For Thailand, in 2021 Central Retail opened 1 Robinson Department Store, namely Ayutthaya, and 5 stores of
Thai Watsadu, namely Suksawat, Bowin, Ayutthaya, Songkhla and Srisamarn. In addition, Central Retail has also
opened a supermarket and other specialty stores. Moreover, 3 stores of Central Department Store have been
renovated, namely Chidlom, Ladprao and Rama 2, and renovation of 2 Robinson Lifestyle, namely Chachoengsao
and Sri Saman.

For Vietnam, it is a market that is strategically important for Central Retail’s future business growth, due to country’s
positive macroeconomic outlook and potential target customers. In addition, according to General Statistics
Office in Vietnam, gross domestic product (GDP) in 2021 continued to expand by 2.6% compared to last year.
The population and the growth of middle-income consumers is the main driver of retail business in Vietnam.

48 Annual Report 2021 (Form 56-1 One-Report)